Titular price cut for petrol, while diesel prices remain the same
Tuesday, November 1st, 2011 6:00:01 by Farhan Hameed
After the fall of oil prices all over the world, the Government of Pakistan has reduced the prices of petrol by merely Rs.1.54 per litre, bringing it down to Rs. 87.41, while the price for diesel remained unchanged
at Rs. 94.15 per litre for the month of November.
It has been decided by the government not to pass on to the consumers the full impact of the declining oil prices in the international markets. This is for covering the adjustments made in the petroleum levy and only a nominal
price cut has been enforced from Tuesday.
It was in June this year when the federal government deregulated the prices of almost all the petroleum products, allowing the refineries and oil marketing companies to announce ex-refinery and ex-depot prices on monthly basis.
These firms were still instructed to keep in view the import parity price, while the prices are still notified by the Oil and Gas Development Authority (OGRA).
One of the officials from the petroleum ministry stated that the price of high speed diesel (HSD) in the international market was barely 18 paisa per litre, so the government has decided not to cut the diesel prices in the country
and it is better to adjust it in the petroleum levy. A notification was issued by OGRA on Monday, reducing the price of high octane blending component (HOBC) by Rs. 5.93 per litre, making it Rs. 106.72 from Rs. 112.65 per litre.
Kerosene oil price has also been reduced by 86 paisa per litre to make it Rs. 85.76 and light diesel oil (LDO) has been priced at Rs. 81.99 per litre, after a cut of Rs. 1.53. LDO has a number of domestic uses in rural areas, where
many machines and certain pumps are run by it.
The petroleum ministry official has claimed that an overall reduction of Rs. 5 per litre has been made in petrol as a result of fall in oil prices around the world. He also stated that the major part of reduction in global oil
prices has been adjusted in the petroleum levy, which has been raised from Rs. 6.54 to Rs. 9.52 per litre. This amount is still less than the budgeted figure of petroleum levy, which is Rs. 10 per litre.
Short URL: https://www.newspakistan.pk/?p=2312
Posted by Farhan Hameed
on Nov 1 2011. Filed under Business.
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